São Paulo – The investment required by Saudi Arabia’s so-called “economic cities” is expected to exceed US$ 133 billion in the next 10 years, said Abdulrahman Al-Saneei, an official from the Saudi Ministry of Industry and Commerce, at the 3rd Business Owners Union of the Organization of Islamic Cooperation Countries (BOU-OIC), which opened last Saturday and closes this Tuesday (17th) in the Saudi city Jeddah.
According to the Arab Brazilian Chamber of Commerce’s CEO Michel Alaby, and Government Relations executive Tamer Mansour, who are attending the conference, these “economic cities” are part of a strategy to diversify the largely oil-the Saudi economy.
The “cities” are similar to condominiums designed to house specific segments of industry, trade and services. They are intended to grow into regional development and employment hubs, preventing migration into major cities, and driving the country forward in its quest for sustainable economic growth.
There are partnership opportunities available for local and foreign construction companies to build the infrastructure the projects require, as well as for companies interested in having operations in these hubs so as to gain access to the Saudi market and neighbouring countries.
Another sector poised to see massive growth is hotels, according to Alaby and Mansour. Over 300,000 hotel rooms should be built in the coming five years, creating 100,000 new jons. There is also demand for training programmes to the personnel who will work at these new establishments.
It is worth noting that apart from being the leading economy of the Middle East and North Africa, Saudi Arabia is the destination of millions of pilgrims who flock to the cities of Mecca and Medina each year, and they need accommodation.
According to Alaby, the congress in Jeddah is being attended by approximately 550 participants and chambers of delegates commerce from several Islamic countries, Arab and non-Arab. The Arab Brazilian Chamber is attending as an observer.
In addition to the conference, the program includes business matchmaking rounds among businessmen and visits to the Jeddah International Trade Fair, a multisectorial trade show which opened on Sunday and will close next Wednesday (18th) in the Saudi city.
Cooperation
Parallel to the forum, the Arab Brazilian Chamber delegates attended a meeting at the Jeddah Chamber of Commerce and Industry with the International Relations executive Bandar Bakur Natto, the assistant secretary general Mohi Al-Din Hakami, and the manager of the Economic Knowledge Centre, Alaa Faisal. The two chambers sustain a cooperation agreement and are looking into implementing a few initiatives.
Hakami said, for instance, that he will invite the Arab Brazilian Chamber to take part in the Jeddah Economic Forum, due in March 2014. In turn, Alaby and Mansour discussed inviting local businessmen to a Buyer Project during the FIFA World Cup in Brazil next year, and to trade shows in the country. They also discussed implementing an exchange program for personnel from the two organizations.
*Translated by Gabriel Pomerancblum
